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CERC defers commissioning of Reliance Power's Sasan unit

27 Jun 2013 Evaluate

In a rare move, the electricity regulator Central Electricity Regulatory Commission (CERC) has set aside the commissioning of the Anil Ambani-owned Reliance Power's subsidiary Sasan Power's (SPL) first unit.

The regulator’s order came on a petition filed by the Western Regional Load Despatch Centre (WRLDC) - part of state-owned Power Grid Corporation, which monitors the flow of power in the Western region for the national grid. Consequently, it directed that Sasan Power shall undertake fresh testing of the unit to achieve the tested capacity.

The agency moved the CERC in the first week of May, alleging that the company’s unit had violated CERC rulings as well as some of the norms. It also charged that SPL had not adhered to the production sharing contract signed with the buyers of its power and demanded the commissioning be quashed.

The SPL ultra mega power plant, located in Sasan, Madhya Pradesh, comprises of six units of 660 megawatts (MW) each, adding up to a total installed capacity of 3,960 MW. The plant is committed to supply power at one of the lowest tariffs in the country, an average of Rs 1.19 per kilowatt hour (KWh).  It also alleged that during tests conducted at SPL from March 27 to 30, the unit failed to generate 95 per cent of its contracted capacity for a continuous 72 hours, a pre-condition for commissioning.

However, RPower’s subsidiary strongly contended that WRLDC has no locus standi to question the commissioning date. WRLDC in its plea had sought to look into the veracity of the certificate issued by the Independent Engineer “in view of deliberate suppression and misrepresentation of the facts”.

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